Bankwest Explained

Bankwest
Former Name:Rural and Industries Bank
Agricultural Bank of Western Australia
Type:Subsidiary
Industry:Financial services
Area Served:Australia
Foundation:1895
Hq Location:Bankwest Place
Hq Location City:Perth, Western Australia
Key People:Jason Chan, Executive General Manager
Products:Home loans
Transaction accounts
Savings accounts
Term deposits
Credit cards
Parent:Commonwealth Bank
Profit:$778 million
Profit Year:2016

Bankwest is an Australian bank based in Perth, Western Australia. It was founded as the Agricultural Bank of Western Australia in 1895 by the Government of Western Australia being renamed the Rural and Industries Bank in 1944, and Bankwest in 1994 before being privatised. After a period of being a listed company on the Australian Securities Exchange, it was taken over by the Bank of Scotland, and since 2008 has been a subsidiary of the Commonwealth Bank.

Having expanded into the Eastern states in the 1980s, it closed the last of these branches in October 2022. The remaining 60 branches in Western Australia will be closed by the end of 2024 with 15 being converted to Commonwealth Bank branches. Bankwest will then become an online bank only.

History

Agricultural Bank era

In 1895, the Government of Western Australia established the Agricultural Bank of Western Australia as a rural lender to support the state's farming industries.[1] Despite its name, it was not a bank, as it did not accept deposits from the public, its liabilities being government bonds. It was a government instrumentality that lent exclusively to farmers.[2] [3]

Rural & Industries Bank era

On 1 October 1945 pursuant to the Rural and Industries Bank Act 1944, the Agricultural Bank changed its name to the Rural and Industries Bank of Western Australia becoming a full trading bank.[4] [5] This enabled it to expand its retail and commercial banking services throughout the state. Its headquarters were at the former Agricultural Bank headquarters at 555 Hay Street, Perth.[3] [6]

In 1956 it became a savings bank.[7] In March 1961, its headquarters moved to a purpose building in Barrack Street. In 1973, a 45% shareholding in Perpetual Finance Corporation was purchased increasing to 100% in 1978. A major shareholding in the Town & Country Permanent Building Society was also purchased in 1973.[3]

In 1985, the first interstate branch was opened in Sydney.[2] In June 1987, the Primary Industry Bank of Australia became a subsidiary.[8] In August 1987, the Teachers' Credit Society was taken over in a bailout.[9] [10] In 1988, the headquarters moved to 108 St Georges Terrace, which was the tallest building in Perth at the time.[3]

Bankwest era

The bank was incorporated in 1990, and in 1994 changed its name to the Bank of Western Australia with the trading name Bankwest, in preparation for privatisation.[11] In December 1995, the Bank of Scotland acquired the bank, and as part of the sale agreement, offered 49 per cent of the shares in Bankwest to the public.[12] [13] Bankwest was listed on the Australian Securities Exchange (ASX) on 1 February 1996.

In May 2001, Bank of Scotland merged with Halifax to form HBOS.[14] In August 2003, HBOS completed a successful takeover offer for the shares it did not own with Bankwest delisted from the ASX.[15] [16]

In 2003, Bankwest acquired API Finance from Australian Pharmaceutical Industries for $300 million in line with its industry specialisation growth strategy in the business banking segment.[17]

In October 2006, Bankwest announced it would move its headquarters from 108 St Georges Terrace to 300 Murray Street.[18] [19] After lengthy delays, the move occurred in September 2012.[20] Bankwest's lease expires in 2031.[21]

In September 2008, Bankwest was included in the sale of HBOS to Lloyds TSB.[22] The following month, with significant problems of its own during the global financial crisis, Lloyds TSB agreed terms to sell Bankwest to the Commonwealth Bank for $2.1 billion.[23] [24] The sale was completed in December 2008.[25] [26]

Bankwest's business banking operation was closed and its customers moved to the Commonwealth Bank, sparking a senate inquiry.[27]

In February 2022, Bankwest announced it would stop offering business products and services and eventually shift existing business customers to the Commonwealth Bank.[28]

Branch closures

In July 2018, Bankwest announced plans to close 29 branches in New South Wales, Victoria and Queensland citing that an overwhelming number of its customers were choosing to bank online.[29] In October 2022, Bankwest closed all its east coast branches.

In March 2024, Bankwest announced that it will close all remaining 60 branches and automated teller machines (ATMs) by the end of 2024 and become a digital bank.[30] [31] Fifteen regional branches will be converted to Commonwealth Bank branches and 45 closed.[31] [30] [32] Cash transactions will be available via other banks' ATMs and Australia Post.[31] [33]

Sponsorships

Bankwest was naming rights sponsor of the Fremantle Football Club in 2004 and 2005.[34]

In 2018, Bankwest signed a seven-year contract to be the naming rights sponsor of Western Sydney Stadium.[35] However, after only three years, the contract was taken over by the Commonwealth Bank and the stadium rebranded CommBank Stadium.[36]

See also

Notes and References

  1. The claim that it was the first state/colony government entity of its type made in 1906 in an eastern states newspaperNews: Agricultural Bank. . . 6 . 305 . Bundarra. 27 October 1906 . 6 March 2024 . 2 . National Library of Australia.
  2. https://web.archive.org/web/20231204003046/https://www.bankwest.com.au/about-us/our-journey Our journey
  3. Book: Spillman, Ken. Horizons: A History of the Rural and Industries Bank of Western Australia. 1989. University of Western Australia Press. 0 85564 304 8.
  4. Rural and Industries Bank Act 1944 (No 51 of 1944) . Classic.austlii.edu.au . 6 March 2024.
  5. News: Rural & Industries Bank . The Wagin Argus And Arthur, Dumbleyung, Lake Grace Express. XXXI. 2079 . Western Australia . 25 October 1945 . 6 March 2024 . 4 . National Library of Australia.
  6. https://trove.nla.gov.au/newspaper/article/240177176 Rural and Industries Bank of WA
  7. Rural and Industries Bank Act Amendment Act (No 31 of 1956) . Classic.austlii.edu.au . 2 . 6 March 2024.
  8. https://web.archive.org/web/20211201000000*/https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-australian-banking-industry/appendix-2.html Appendix 2: Australian Banks 1980 to 1990
  9. https://trove.nla.gov.au/newspaper/article/132153715 Rothmans improves profit by 14.5 pc to $60.58m
  10. https://web.archive.org/web/20201123190858/https://www.rba.gov.au/publications/rdp/2001/2001-07/deregulated-era.html The Deregulated Era
  11. https://www.legislation.wa.gov.au/legislation/prod/filestore.nsf/FileURL/mrdoc_7169.pdf/$FILE/R%20&%20I%20Bank%20Act%201990%20-%20%5B00-00-00%5D.pdf?OpenElement R&I Bank Act 1990
  12. https://trove.nla.gov.au/newspaper/article/133921213 BankWest launches its public float
  13. https://web.archive.org/web/20240307091456/https://www.afr.com/politics/bank-of-scotland-lifts-holding-in-bankwest-to-55pc-19981117-k8fpc Bank of Scotland lifts holding in BankWest to 55pc
  14. https://money.cnn.com/2001/05/04/europe/halifax/index.htm Halifax, BoS agree merger
  15. https://web.archive.org/web/20240306110447/https://www.smh.com.au/business/scots-turn-screws-on-bankwest-20030709-gdh2et.html Scots turn screws on BankWest
  16. https://announcements.asx.com.au/asxpdf/reloaded/pdf/00378280.pdf HBOS - Bank of Western Australia Scheme of Arrangement become effective
  17. API and BankWest announce alliance . Australian Pharmaceutical Industries. 29 April 2003 . 21 March 2012 . dead . https://web.archive.org/web/20120317203005/http://www.api.net.au/_lib/doc/financial_reports/030429a.pdf . 17 March 2012.
  18. https://web.archive.org/web/20240306112337/https://www.afr.com/property/bankwests-seismic-shift-in-perth-20061020-jf2of BankWest's seismic shift in Perth
  19. https://web.archive.org/web/20210331223704/https://www.watoday.com.au/national/western-australia/future-murky-for-raine-square-as-bankwest-coles-mull-exit-20210319-p57cbk.html Future murky for Raine Square as Bankwest, Coles mull exit
  20. News: Thomas . Beatrice . 2012-09-21 . Pioneering bank gets a new home . 14 . The West Australian.
  21. https://web.archive.org/web/20220312153049/https://www.charterhall.com.au/News/news-article/2021/12/14/charter-hall-secures-bankwest-lease-renewal-at-its-perth-headquarters Charter Hall secures Bankwest lease renewal at its Perth headquarters
  22. https://www.theguardian.com/business/2008/sep/18/marketturmoil.hbosbusiness Rescue: Lloyds pulls HBOS out of the fire with £12bn merger
  23. Web site: Commonwealth Bank of Australia to acquire Bank West and St Andrew's. Commonwealth Bank. 2008. 8 October 2014. https://web.archive.org/web/20081012083229/http://www.commbank.com.au/about-us/news/media-releases/2008/081008-news-bankwest-acquisition.aspx. 12 October 2008. dead.
  24. Web site: BankWest and St Andrew's sold to Commonwealth Bank. Bank of Western Australia. 2008. 9 October 2008. https://web.archive.org/web/20081009071328/http://bankwest.com.au/Media_Centre/Media_Releases/Media_Releases_2008/BankWest_and_St_Andrews_sold_to_Commonwealth_Bank/index.aspx. 9 October 2008 . live.
  25. https://web.archive.org/web/20240307094757/https://www.accc.gov.au/media-release/accc-not-to-oppose-commonwealth-bank-of-australias-proposed-acquisition-of-bank-of-western-australia-ltd ACCC not to oppose Commonwealth Bank of Australia's proposed acquisition of Bank of Western Australia Ltd
  26. https://announcements.asx.com.au/asxpdf/20081219/pdf/31f99szzwt3nh8.pdf CBA completes acquisition of BankWest and St Andrews
  27. https://web.archive.org/web/20240307092210/https://www.afr.com/companies/financial-services/senate-inquiry-into-commonwealth-bank-over-bankwest-is-a-slur-on-our-biggest-bank-20151201-glcl4a Senate inquiry into Commonwealth Bank over Bankwest is a slur on our biggest bank
  28. Web site: 2022-02-23 . Bankwest surrenders business brand to CBA, zeroes in on retail-focused tech transformation . 2022-05-05 . FST Media . en-AU.
  29. Web site: Yeates . Clancy . Bankwest to close 29 east coast branches, cut 200 jobs . . 28 July 2018 . en . 18 July 2018.
  30. Web site: Bankwest branch closure information. Bankwest. 2024-03-06.
  31. News: Commonwealth Bank subsidiary Bankwest to close all 60 branches across Perth and Western Australia. ABC News. 2024-03-06. 2024-03-06.
  32. https://www.news.com.au/finance/business/banking/bankwest-called-upon-to-face-parliamentary-committee-after-branch-closure-announcement/news-story/93be4963b74a29cd1206b76d12f1478a Bankwest called upon to face parliamentary committee after branch closure announcement
  33. Web site: Ways to bank with us. Bankwest. 2024-03-06.
  34. https://web.archive.org/web/20200324101452/https://resources.fremantlefc.com.au/aflc-fre/document/2019/12/03/39d21bd8-43dd-4ec3-a7ec-792de188ca83/2004-DM-1.pdf BankWest increases support
  35. https://web.archive.org/web/20231102090638/https://www.infrastructure.nsw.gov.au/news/bankwest-secures-naming-rights-to-western-sydney-stadium/ Bankwest secures naming rights to Western Sydney Stadium
  36. https://web.archive.org/web/20210921191009/https://mumbrella.com.au/bankwest-stadium-becomes-commbank-stadium-as-cba-secures-naming-rights-704335 Bankwest Stadium becomes CommBank Stadium as CBA secures naming rights

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